BANKING: Franklin National Fizzles Out

The usually understated Arthur Burns,
chairman of the Federal Reserve Board, made no attempt to play down the
dramatic resolution last week of Franklin National Bank's vault of trou
bles. "The entire financial world," said he, "can
breathe more easily, not only in this country but abroad."

In fact, Franklin's shocking saga of mistakes and mismanagement had
caused fears that the nation's banking system was shaky and that lack
of public confidence might lead to a run on many banks. The end came
surgically, as U.S. Comptroller of the Currency James Smith declared...